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UPS Profit Misses Expectations; Outlook Lowered

Shipping Giant Cites Higher Costs for Lowered Earnings Forecast

By

Laura Stevens

Updated July 29, 2014 1:18 p.m. ET

United Parcel Service Inc. posted disappointing second-quarter earnings due to higher spending and transportation costs and lowered full-year profit projections as it invests more heavily than expected to avoid problems this holiday season.

The company will spend about $175 million to improve peak operations, up from its previous estimate of $100 million, on a list that includes new technology, 50 new package sorting shifts, and...